The impacts of Globalization in rural areas of Slovenia: Examples from the Pomurje and Goriška regions

Abstract

Globalization processes have restructured rural areas enormously: their impacts in European rural areas were studied in order to define the balance in opportunities and reality as well as threats. In Slovenia two border rural regions were selected: the Pomurje region and the Goriška region. In the first one the main research focus was: (1) environmental capital and sustainable development of economic activities based on the regions preserved environment (i.e. tourism); (2) migration flows in rural areas, in particular amenity migrations; and in the second one the project objectives were implemented through a study of rural business.

Full text

THE IMPACTS OF GLOBALIZATION IN RURAL AREAS
OF SLOVENIA: EXAMPLES FROM THE POMURJE
AND GORIŠKA REGIONS
AUTHORS
Barbara Lampič, Irena Mrak, Irma Potočnik Slavič
University of Ljubljana, Faculty of Arts, Department of Geography, Aškerčeva2, SI– 1000Ljubljana, Slovenia
barbara.lampic@uni-lj.si, irena.mrak@siol.net, irma.potocnik@ff.uni-lj.si
UDC: 911.3:502.131.1:005.44(497.4-22)
COBISS: 1.01
ABSTRACT
The impacts of globalization in rural areas of Slovenia: examples from the Pomurje and Goriška regions
Globalization processes have restructured rural areas enormously: their impacts in European rural areas
were studied in order to define the balance in opportunities and reality as well as threats. In Slovenia two
border rural regions were selected: the Pomurje region and the Goriška region. In the first one the main
research focus was: (1) environmental capital and sustainable development of economic activities based
on the region’s preserved environment (i.e.tourism); (2) migration flows in rural areas, in particular ameni-
ty migrations; and in the second one the project objectives were implemented through astudy of rural business.
KEY WORDS
globalization, rural areas, rural businesses, sustainable development, amenity migration, Pomurje region,
Goriška region, Slovenia
IZVLEČEK
Vplivi globalizacije na podeželje vSloveniji: primer Pomurja in Goriške
Prispevek prikazuje izsledke raziskave, vkateri so bili preučeni procesi globalizacije in njihovi učinki na
evropskem podeželju znamenom prepoznavanja ravnotežja med priložnostmi in realnim stanjem ter grož -
njami, ki jih predstavljajo različni globalizacijski procesi. VSloveniji je preučevanje potekalo vpomurski
in goriški statistični regiji, in sicer je bil vprvi podrobneje preučen (1) okoljski kapital in sonaravni razvoj
dejavnosti, ki slonijo na ohranjenem naravnem okolju vregiji (npr. turizem) ter (2) selitveni tokovi na
podeželju, predvsem priselitev tujcev zaradi privlačnosti pokrajine; vgoriški statistični regiji pa je bilo podrobneje
preučeno podjetništvo na podeželju.
KLJUČNE BESEDE
globalizacija, podeželje, podjetništvo na podeželju, trajnostni razvoj, priselitev tujcev, Pomurje, Goriška,
Slovenija
The article was submitted for publication on July15,2011.
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Geografski vestnik 84-1, 2012, 151–162 Articles
ARTICLES

1 Introduction
According to the European Commission »globalization is seen to touch every walk of life– open-
ing doors, creating opportunities, raising apprehensions« (The European Interest: Succeeding in the
Age of Globalization2007). On the EU level, the absence of an integrative analysis of globalization process-
es has been recognized as an obstacle to effective regional development strategies capable of meeting
globalization challenges, especially in European rural areas.
For this reason the 7FP project »Developing Europe’s Rural Regions in the Era of Globalization
(DERREG)« is focused on rural Europe, where the delicate balance of opportunities and threats pre-
sented by globalization is particularly significant. Globalization is bringing significant economic, social,
cultural and also political changes, and consequently also changes to rural localities, but the effects of
these changes are not everywhere the same (Woods2007b).
The DERREG project focused on four empirical research topics:
• Global engagement and the local embeddedness of rural businesses, where the extent to which
globalization processes have impacted the structure of the local business networks and affected the
rural economy was investigated;
• International mobility and migration of rural populations; the role of rural regions in interna-
tional flows of mobility were studied (internationalized mobility, transnational mobility of migrant
labour, return migration, foreign home ownership);
• Environmental capital and sustainable rural development; the opportunities for regional devel-
opment based on an »eco-economy« were explored;
• Capacity building, governance and knowledge systems; the aim of which is to analyze the embed-
dedness of rural regions in knowledge systems and the processes of learning -the concept of »learning
region«.
Nine project partners from eight countries focused their work on 10selected rural regions: Oevre
Norrland in Sweden, West Region in Ireland, Jihomoravský kraj in the Czech Republic, Alytus in Lithuania,
Westerkwartier in the Netherlands, Comarca de Verín in Spain, Regierungsbezirk Dresden and Saarland
in Germany, and the Pomurje and Goriška regions in Slovenia.
In Slovenia the study was conducted in two very different regions with regard to their geographi-
cal features. For amore detailed study of the potential of environmental capital for the purposes of
developing aperipheral rural area and of the factors and impacts of recent migration flows in Europe
purposes, we turned to the Pomurje region. The study of the development of entrepreneurship in rural
areas was carried out in the Goriška region, which traditionally is already closely linked with the inter-
national space.
The heterogeneity of Slovenian rural areas, which according to OECD methodology encompass
the whole of the country territory, can be seen by some basic comparisons at the national and region-
al levels.
The Pomurje region is geographically composed of the fertile area of the Mura plain with abun-
dant groundwater resources and agricultural land where consequently mostly conventional agriculture
is practiced, with ahigher population density, sufficient infrastructure etc. and of the hilly area of Goričko,
Lendavske Gorice and apart of Slovenske Gorice, with ahigh biodiversity and preserved cultural land-
scape in which settlements are few and dispersed. Compared to other Slovenian regions, Pomurje, bordering
Croatia, Hungary and Austria, is historically recognized as an underdeveloped region characterized by
outmigration. Although the economic relevance of agriculture in general is decreasing, the Pomurje region
is still characterized as an agricultural region with the weakest economic power in Slovenia.
The Goriška region extends over the western part of Slovenia and is situated at the geographical
crossroads of several regions: the Alpine, pre-Alpine, Karst-Dinaric and sub-Mediterranean. In general,
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Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …
Figure1: Selected regions and urban/rural typology of Slovenia according to OECD methodology. p

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Geografski vestnik 84-1, 2012 Articles
KOPER
CELJE
KRANJ
MARIBOR
POSTOJNA
TRBOVLJE
LJUBLJANA
NOVO MESTO
NOVA GORICA
MURSKA SOBOTA
SLOVENJ GRADEC
Cartographer: Tanja Koželj
Sources: Eurostat, Statistical oce of the Republic of Slovenia, 2010
© University of Ljubljana, Faculty of Arts
Pomurje
Goriška
Urban/rural topology
predominantly rural
signicantly rural
case study region
borders of statistical regions
Scale: 0 50 km

the Goriška region is characterized by low population density and dispersed settlement, with Nova Gorica
and its immediate vicinity as the only agglomeration area. The transborder character of the area is reflect-
ing in the distribution of economic activities and population, migration flows, configuration of the
development axis, etc. The »Goriška« section of the country’s border was one of the most open bor-
der area in the broader European context even before Slovenia integrated into the EU. This strong
interregional character of the area has been asignificant characteristic of regional development also
since joining the EU in2004.
The main benefit of the DERREG project is to advance existing scientific knowledge and produce
practical recommendations for the rising ability of regional development strategies to cope with these
new challenges. Research at the interdisciplinary scientific level has been enriched by the cooperation of
national and local stakeholders in order to include their knowledge on regional development processes.
2 Methodology
The contribution of the research is twofold:
• Theoretical-methodological; acomplex approach to the study of the latest processes and effects of
globalization has required introducing arange of new approaches, the results of which contribute
towards the establishment of new theoretical principles for interdisciplinary research.
• Programmatic-planning; through an analysis of the operation of various regional stakeholders and
their networking, we have prepared a»good practice database«. Of essential importance are the final
recommendations to policy-makers at the regional, national, and European levels, which are directed
towards encouraging greater resilience of society and the economy to the coming changes in rural areas.
For the research approach (Table2) in environmental capital investigation, the five main steps
were already defined in the project initial phase and were followed throughout the entire project. The
review of literature and statistical data, focusing on various components of environmental capital (i.e.water,
land and soil, air, energy sources and use, biodiversity, protected areas, waste management etc.) was
supported by the »media analysis«, in which articles on environmental issues in the newspaper Vestnik
were reviewed. The main objective was to compare the contents in the year2000and2008, assessing
the presence of the various topics as well as the approach in presentation. The results provided abasis
for the selection of regional stakeholders to be included in the third research step. The aim of the qual-
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Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …
Table1: Some general characteristics of Slovenia, the Pomurje region and the Goriška region
(1SORS2011; 2MESP2011).
indicator Slovenia Pomurje region Goriška region
total area (km2)120,273 1,337.5 2,324.7
population (2010)12,050,189 119,145 119,146
population density1 (inhabitants/km2) 101 89 51
ageing index (2010)1117.4 132.2 131.2
% of Natura 2000areas (2010)236.0 45.9 47.0
% of protected areas (2010)29.4 35.7 39.5
unemployment rate (2010)111.8 19.4 9.8
gross domestic product
per capita in EUR (2008)118,450 11,986 17,696
total increase of population (in2009)114,614 –661 21
% of foreigners from EU countries (2011)16.5 28.0 7.9

itative interviews (15) was to define the region’s main environmental advantages as well as problems
as seen by regional developers. Based on the results from the previous steps, the research was focused
on two main regional issues– protected areas and sustainable tourism development. Therefore, the
fourth step involved the definition of best practices (9) from these two fields.
Amenity migration is anew phenomenon in the Slovenian rural space. Detailed demographic analy-
ses with afocus on the migration dynamics of the region formed the basis for our empirical investigation.
Due to the high share of EU foreigners in Pomurje, we focused our work on qualitative interviews (13)
with foreign home owners. The aim was to identify the profile of amenity migrants, their reasons for
coming, and their personal experiences in the region with the local population and legal procedures.
The experiences described and especially the obstacles to their integration formed the basis for the iden-
tification of the responsible institutions for promoting and facilitating regional engagement of
international migrants.
In the era of globalization, small firms located in rural areas in particular are extremely fragile
(Klemenčič, Lampič and Potočnik Slavič 2008). Evolving DERREG methodology is focused on
addressing globalization processes in rural business development. After adetailed review of the rel-
evant literature, we have provided aprofile of business structures in the case study region based on explicit
statistical data at the NUTS3level. Numerous statistical data indicated ashortage of small and medi-
um-sized enterprises in the Goriška region. Also using the database provided by the Chamber of
Commerce and Industry, we enlisted approx.100firms that would address the objectives of our research:
SMEs with international contacts and SMEs reflecting representative regional structure by sectors. The
analytical part was supplemented with the selection of arepresentative sample of firms (20) that were
included in an electronic survey. The latter was amongst others focused on investigating how rural busi-
nesses derive strength from being part of asmall, supportive business community, or from other aspects
of their local business environment (such as close links to local institutions and agencies). In-depth
explanations were provided by face to face structured interviews (8) with firm managers willing to coop-
erate. For acontextual analysis of the wider business environment, interviews with actors responsible
for business development (6) were conducted.
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Geografski vestnik 84-1, 2012 Articles
Table2: Research phases in the selected regions.
1st phase 2nd phase 3rd phase
environmental data base set national media analysis qualitative identification
capital up, literature and regional (Vestnik2000 interviews and analysis
review documentation and2008) with regional of good
analysis stakeholders practices
amenity data base set up, qualitative identification
migration literature review interviews and analysis
with foreign of good
home owners practices
rural data base set up, e-survey qualitative identification
business literature review interviews and analysis of
with firm good practices
managers and network
brokers
regional data base comparison,
comparison regional workshops,
contextual reports
good practice database, web resource centre,
conclusions and policy recommendations

The regional comparison synthesizes the findings from all included studies, summarized in con-
textual reports for each case study region, good practice platform (including practices from all
included case study regions) and policy recommendations for policy makers which can potentially be
implemented at the regional, national and EU levels.
3 Discussion: Selected impacts of globalization in the Pomurje and Goriška
regions
Environmental capital represents the major potential of the Pomurje region for development
based on conservation and sustainable use of environmental resources. The importance of environ-
mental capital can be seen through the statistical Ødata and is also recognized through the regional
media, the opinion of main regional stakeholders (i.e.the representatives of regional development agen-
cies, regional forest management service) and in the local population’s opinion– they are very proud
of the preserved natural environment and also of their tradition and cultural heritage.
The percentage of protected areas according to IUCN categories (35.6%) and areas of Natura2000(45.9%)
in Pomurje clearly indicates the good condition of the region’s environment on the one hand but on
the other hand it also reflects the response to the environmental threats in the region. The two preser-
vation forms are mostly overlapping, but the regimes are different and combined, and potentially help
in nature preservation. The numbers are significantly higher compared to the national level in the case
of protected areas and also higher in the case of Natura2000areas (Table3).
The high percentage of Natura2000areas is partially the result of human maintenance of the land-
scape through traditional agricultural use; therefore also the largest protected area in the region Goričko
Landscape Park (covering 34.5% of the region) protects its unique cultural landscape as well as numer-
ous localities of cultural heritage reflecting the natural conditions of the area to which the local population
adapted throughout the centuries. Due to various threats to the area– such as intensive overgrowth of
some parts in the park due to the abandonment of cultivation, the establishment of the park was nec-
essary in order to preserve the area, but on the other hand the richness of the biodiversity can only be
maintained through continuing human presence and activities– especially agriculture. The entire Pomurje
region is recognized as the main agricultural region in Slovenia. The percentage of agricultural land
(61% in the region; 28% in Slovenia) and arable land (42% in the region; 10% in Slovenia; MESP2011)
in Pomurje is also an important component of environmental capital, positioning the region in the first
place in Slovenia in terms of opportunities for food self-sufficiency. With the remediation of environ-
mental problems related to agriculture (water and soil pollution), the region has the potential to become
not only self-sufficient but also aregion with safe food production.
Tourism is another source of sustainable development potential in Pomurje. This economic activ-
ity is based primarily on the use of the region’s most abundant natural resource– thermal waters. The
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Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …
Table3: Protected areas and areas of Natura2000in Slovenia and Pomurje (MESP2011).
Slovenia Pomurje statistical region
type of protected number area % of national number area % of regional
area territory territory
national park 1 838 km24.1 –– –
regional park 3 418 km22.1 –– –
landscape park 44 646 km25.0 3 478 km234.5
Natura2000 7298 km236 614 km245.9

most important tourism entity in the region is the spa Terme 3000in Moravske Toplice. It has devel-
oped intensively in recent decades and is gradually linking its offer with the overall tourism attractions
of the region, which are increasingly more sustainably oriented. The latest development of tourism (such
as biking trails and other projects based on the area’s tradition) was assisted strongly by various EU
funds, and some segments of this offer can be recognized as agood practice of sustainable tourism.
The main development generators in terms of new ideas and networking of tourism entities are the
three regional development agencies (the Mura Regional Development Agency, Sinergija, Prleška
Development Agency); significant also is the role of the Goričko Landscape Park management insti-
tution. Their responsibility is to achieve an equilibrium between the preservation of natural and cultural
heritage on the one hand and development on the other, with the latest being oriented towards agri-
culture (focused on food production and associated maintenance of the cultural landscape) and tourism
based on the environmental capital of the park, as well as on the rich regional cultural heritage, tradi-
tion and strong social capital of the local population.
Peripheral rural localities are becoming increasingly attractive also to transnational in-migrants,
not only because of improved transport connections but also due to lower property prices, the recog-
nized high natural amenity of rural areas, nostalgia, and similar (Woods2007b). These factors are very
significant in the growing market for foreign property investment in rural regions of Central and Eastern
Europe.
Foreign home ownership (second home owners and permanent residents) can be considered apos-
itive development. It can have astimulating effect on the development of the local economy, increase
of services, and renewal of abandoned villages and the cultural landscape.
This process can be seen on asmaller scale in Slovenia as well. Over the period from May2004 to
the end of2010, there were 3576foreign purchases of real estate in Slovenia (MF2010). The majority
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Geografski vestnik 84-1, 2012 Articles
0
10
20
30
40
50
60
70
80
90
2004 2005 2006 2007 2008 2009 2010
Great Britain Austria Germany Other
Figure2: The structure of citizenship of foreign purchases of real estate in the Pomurje region (MF2010).

of new real estate owners are second home owners but in some regions they have also settled down
permanently as part of the resident population.
The overall number of foreigners in Pomurje is relatively small (1099in2011), but the share of for-
eigners from EU countries is the highest (28%) of all Slovenian regions (SORS2011; Figure2). The
purchase of asecond home or permanent residence by predominantly British migrants (mostly to the
hilly area of Goričko) has been attributed to their nostalgic desire for acertain lifestyle. An essential
motive in the purchase of property in remoter parts of rural Europe is the quality of the environment
(landscape) and asimpler way of life. But two other factors played acrucial role: the very low cost of
housing and the existence of low cost airline connections (London–Graz). Also worth mentioning is
the part played by an individual from the UK who started to advertise the idyllic countryside in Slovenia,
Goričko (via the internet) in2004 and2005 and managed to sell several run-down houses in the region.
The research focused on amenity migrants: their reasons for coming to the region, obstacles they
encountered in purchasing real estate, settling down in the new country and finally their integration
into rural society. The results of our interviews show an overall satisfaction of foreigners with the beau-
tiful and pleasant landscape, new culture and people, but disappointment in the formal part of inclusion
in the new society: bureaucratic obstacles and the very poor language (English) knowledge of officials
are often exposed as negative experiences in Slovenia. On the other hand, their integration in the local
environment (i.e.at the level of villages) was mostly avery positive experience. In the case of our research
158
Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …
0
1
2
3
4
5
6
7
8
9
Bringing in new business
Awareness of competition
Improving market
position
Finding new markets
Improving production process
Developing new products
Improving existing products
Reacting to customers' needs
Securing investment capital
Compliance with rules and regulations
1c Customers, European
2a Suppliers, Regional
3a SME, Regional
3b SME, National
3c SME, European
8a Research institutions, Regional
8b Research institutions, National
11a Stakeholders/Owners, Regional
15a Cooperative, Regional
Figure3: Locally embedded firm in the field of supply, highly specialized, owned by atraditional cooper-
ative, otherwise strongly internationalized firm (note: 1c, 2a, 3a, 3c etc. are codes indicating the variety
of partners on different levels: local and regional, national, European, World).

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Geografski vestnik 84-1, 2012 Articles
region the »best practice« is the local population and their acceptance of foreign home owners into their
social activities and everyday life. The highest share of in-migrants from EU countries, the poor eco-
nomic situation, the border and peripheral position of the region are all factors which influence the
different attitude of local people towards the new settlers. In the case of the Pomurje region the increas-
ing trend of international residential property purchase as aresult of globalization is recognized as positive
experience mostly in terms of integration with local communities.
Slovenian rural areas are characterized by continuous long-term underdeveloped entrepreneur-
ship. After the collapse of the communist system and the former Yugoslavia, vast changes have occurred
as aresult of EU integration and acceptance of the common Agricultural Policy and Rural Development
Program; consequently entrepreneurship has been (at least formally) indicated as an important devel-
opment factor of rural areas. The reality, however, lags behind the proposed guidelines. The decline of
larger systems and their subsidiaries was not replaced by private entrepreneurship at the same pace,
while in the former system private entrepreneurship had alimited and quite minor role as well as aneg-
0
1
2
3
4
5
6
7
8
9
Bringing in new business
Awareness of competition
Improving market
position
Finding new markets
Improving production process
Developing new products
Improving existing products
Reacting to customers' needs
Securing investment capital
Compliance with rules and regulations
1d Customers, World
2b Suppliers, National
3a SME, Regional
3b SME, National
4a Large firms, Regional
4b Large firms, National
4c Large firms, European
5c Multinational companies, European
6b Governmental advisory bodies, National
7a Industry/sector representative organization, Regional
7b Industry/sector representative organization, National
8a Research institutions, Regional
Research institutions, National
9b Business consultants, National
12a Banks and other financial institutions, Regional
13b Public support programmes, National
Figure4: Firm with strong international relationships, which is also an example of aglobalized firm,
but also having astrong attachment and responsibility to the local environment.

ative image. Small and medium enterprises (SMEs), on the other hand, do not develop overnight: asuc-
cessful combination of ideas, interest, capital, markets, contacts, social network etc. must first be in place.
The data confirm that most of the firm’s activities take place outside the regional framework (see Figures3
and 4). Even those surveyed firms that have astrong international profile perform only amodest share
of total transactions outside the European continent. The results obtained indicate that the SMEs sur-
veyed have established stronger ties with SMEs (most evident at the national level) than with large firms
or multinational companies (at the European level). The majority of surveyed firms in the Goriška region
are highly integrated into the international and globalized market as aconsequence of arelatively small
domestic market and long-lasting cross-border relations. The bulk of firms in this border zone with
Italy already adopted resilience strategies 20–30years ago– they are mostly export-oriented (European
networks prevail). Yet some firms are evidently embedded in the local and regional environment. Some
traditional firms (dairy, viticulture) are locally embedded in the field of supply (fresh high quality milk,
reeds etc.), but they have evolved different resilience strategies.
It becomes obvious that the mapping of the firms’ business network cannot be performed by using
solely quantitative methods. The importance of personal contacts, the role of third party organizations
(universities, professional associations etc.) as connecting points for SMEs »going global« and the strate-
gic choices of establishing extra-regional collaboration cannot be measured using purely economic or
trade indicators.
4 Conclusions
The research on globalization processes and their impacts on European rural areas was focused on
ten rural regions, selected by DERREG project partners. The sample regions were chosen according
to their characteristics in accordance with the main project objective. In Slovenia two border rural regions
were studied: the Pomurje region and the Goriška region, in which different parts of the study were
conducted. In the Pomurje region the main focus was: (1) environmental capital and sustainable devel-
opment of economic activities based on the region’s preserved environment (i.e.tourism); (2) migration
flows in rural areas, in particular amenity migrations.
In the Goriška region the project objectives were implemented through astudy of rural business.
In both selected regions, the main goal was to identify the balance in opportunities and reality as well
as threats caused by various globalization processes.
Environmental capital represents amajor development potential of Slovenian rural areas, and as
such is recognized also through various forms of protected areas and areas of Natura2000. Awell-pre-
served environment along with arich cultural heritage and strong social capital represent the main pull
factors for the development of tourism. Sustainable tourism development has been coming increas-
ingly to the fore in recent times, and as such is also widely supported through different EU projects.
One of the constraints on the success of these projects is too strong dependency on EU funding, and
at present the sustainability of tourism project results is to some extent questionable. Unfortunately,
this segment is still difficult to assess objectively, since insufficient time has passed since the comple-
tion of most of the projects.
Awell-preserved natural environment in combination with afew other motives (low cost of liv-
ing and relatively cheap and available real estate, improved transport connection) triggered another
process caused by globalization– international migration flows, in particular amenity migration. The
Pomurje region is one of the best examples in Slovenia where foreign home owners appeared in atra-
ditional rural environment. The migrants decided to either settle down in the region or to use their
property as second homes. They greatly appreciate the preserved rural environment and the openness
of the local population on the one hand, but they have had to deal with ignorance and unfriendly expe-
riences in dealing with public authorities and institutions in the formal part of their integration on the
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Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …

other. This points out show that rural areas are formally not ready to respond rapidly to the new social
and spatial phenomena.
Amenity migrants in the Pomurje region have positively contributed to the preservation of cultural
heritage preservation since they bought run-down houses which they have renovated in the traditional
style and in keeping with the region’s environment. With their sympathies and positive attitude to the
rural milieu and local tradition, they have also made apositive impact by strengthening the values of
the local population, which prior to this had been eroding. This is one of the good examples of posi-
tive globalization impacts on peripheral rural areas.
In connection with globalization processes, rural business is very specific and does not depend on
the same spatial and socio-economic structures of every rural region. In the Goriška region, for exam-
ple, there has been dual-track economic development over the past twenty years: (1) large enterprises
and SMEs, some of them originating from the socialist period, the others established more recently;
both have undergone rapid and comprehensive transformation as they had to adapt to anew business
environment; (2) sole proprietor and micro firms that played an important pioneer role in the former
system as they introduced the entrepreneurship mentality based on Italian experiences; nowadays they
also need to adapt to very severe competition on domestic and foreign markets.
The Goriška region is strongly and widely exposed to external environments and is therefore very
sensitive and fragile to market disturbances during periods of economic crisis: at present the gradual
examples of the chain reaction effect can be witnessed, and numerous firms are being closed for var-
ious reasons. Globalization and embeddedness are parallel processes: they represent two different ways
of ‘sensing’ the dynamics of afirm’s business network. The ‘globalizedness’, i.e.the degree of global-
ization of afirm, and embeddedness fuel one another. An SME that is highly globalized is, to some extent,
well embedded in its local setting. Local embeddedness increases resilience and the return of benefits
to the region from global engagement. Firms trading internationally should be encouraged to source
materials locally, and to participate in regional support networks (DERREG2011). Networking inside
rural areas (arural web connecting tangible and intangible capital) combined with purposeful and
long-term international networking is nowadays necessary for the success of local/rural economies and
sustainable rural development.
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Barbara Lampič, Irena Mrak, Irma Potočnik Slavič The impacts of globalization in rural areas …